1. This is an application in revision under Section 388 of the City of Nagpur Corporation Act, 1948, and it arises out of an order of assessment of property tax on certain houses of the applicant held by him within the Nagpur Municipal area. It appears that the applicant was paying certain property tax to the Municipal Corporation and the Municipal Corporation wanted to enhance the property tax. Accordingly, therefore, a notice dated March 16, 1962, was issued to the applicant under Section 127 of the City of Nagpur Corporation Act (hereinafter called the Corporation Act). The notice was served on the applicant on March 19, 1962. This was a notice for the enhancement of the property tax.
2. The applicant, therefore, had served a notice of objection to the enhanced valuation of the property under Section 128 of the Corporation Act. There was an investigation by the Objection Officer, and the Objection Officer dismissed the objection raised by the applicant. Accordingly, therefore, the applicant Vent in appeal to the District Court under Section 130 of the Corporation Act, The learned Assistant Judge, who heard this appeal, passed an order that the enhanced property tax should be paid from October 1, 1961. This order is challenged by the applicant on the ground that the learned Assistant Judge ought to have ordered that the enhanced taxes should be paid from April 1, 1962, i.e. the quarter beginning after the service of the notice.
3. Part IV, Chapter XI, of the Corporation Act deals with taxes. How taxes are to be imposed and the procedure for imposing taxes, including the property tax, is provided under Sections 114, 115 and 116 of the Corporation Act. Under Section 119 the annual value of land or building has to be ascertained. A procedure is laid down there. Under Section 124 the assessment and duration of the assessment is provided. The Chief Executive Officer shall arrange according to Section 124(5) for a survey for the purposes of assessment of each part of the City at least once in five years save for the omission, with the previous consent of the Standing- Committee, of any small areas which might be more conveniently re-assessed in a subsequent year. Under Section 126 when the valuation under Section 124 of the properties in any ward has been completed, the Chief Executive Officer shall cause the respective variation to be entered in a list and give public notice of the place where such list may be inspected. Objections are also invited under this provision.
4. Under Section 127 of the Corporation Act, the Chief Executive Officer shall in all cases in which any land or building is for the first time valued, or in which the valuation of any land or building previously valued is increased under Section 124, give special notice thereof to the owner or occupier of the same and when the valuation is so increased, the said notice shall contain a statement of the grounds of the increase. We are here concerned with a notice of increase in the valuation under Section 127. Then the assessee could object to such notice under Section 128. The objections are investigated and if the assessee is aggrieved by the decision of the Objection Officer, he approaches the District Court. There is then under Section 133(7) the authentication of the assessment list which has to be prepared after the valuation by the Chief Executive Officer after all the objections have been disposed of, under Section 130. Under Section 133(2), the said assessment list shall, subject to such alterations, as may thereafter be made therein under the provisions of Sub-section (5) of Section 130 or of Section 136, be conclusive evidence of the amount of property tax leviable on each land or building within the City in the financial year to which the list relates. The financial year is generally from 1st of April. This provision, therefore, shows that the assessment list, after the necessary alterations including the alteration after the appeal to the District Court are made, would be conclusive evidence of the property tax leviable in the financial year to which the list relates. Under Section 138 the period, for which revised valuation is to continue in force is given. 'We are here concerned with Sections 127, 133(2) and 138. Under Section 138 when the valuation of any land or building is revised in consequence of an objection made under Section 128 or an appeal is preferred under Section 130, which will be the appeal to the District Court, the revised valuation shall take effect from the quarter in which the first valuation would have taken, effect in the same manner and for the same period and subject to the same conditions as the original valuation.
5. Now, so far as our case is concerned, the notice of the increased valuation was served on March 19, 1962. The first quarter of the assessment year after the date of service of notice is April 1, 1962. Therefore, according to Section 138 of the Corporation Act, after the valuation is revised by the disposal of the objections raised by the assessee, the revised valuation shall take effect from the quarter in which the first valuation would have taken effect in the same manner and for the same period. In the present case, since the notice appears to have been served only on March 19, 1962, the quarter following the date of notice is April 3, 1962. It appears to me, therefore, that tinder Section 133(2) read with Section 138 of the Corporation Act, the applicant will have to pay the enhanced property tax not from October 1, 1961, as is ordered by the learned Assistant Judge, but from April 1, 1962. In this view of the matter, therefore, the order of the learned Assistant Judge will have to be modified.
6. This revision application is therefore partly allowed and the order passed by the learned Assistant Judge is modified to the extent that the revised valuation shall take effect from April 1, 1962. Subject to this modification, the order of the learned Assistant Judge is confirmed. There will be no order as to costs.